82 FR 27738 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 115 (June 16, 2017)
Federal Register Volume 82, Issue 115 (June 16, 2017)
| Page Range | 27738-27739 | |
| FR Document | 2017-12536 |
[Federal Register Volume 82, Number 115 (Friday, June 16, 2017)] [Notices] [Pages 27738-27739] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12536] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549-2736 Extension: Rule 15c2-11; SEC File No. 270-196, OMB Control No. 3235-0202 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange Commission (``Commission'') has submitted to the Office of Management and Budget (``OMB'') a request for approval of extension of the previously approved collection of information provided for in Rule 15c2-11, (17 CFR 240.15c2-11), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act''). Rule 15c2-11 under the Exchange Act regulates the initiation or resumption of quotations in a quotation medium by a broker-dealer for over-the-counter (``OTC'') securities. The Rule was designed primarily to prevent certain manipulative and fraudulent trading schemes that had arisen in connection with the distribution and trading of unregistered securities issued by shell [[Page 27739]] companies or other companies having outstanding but infrequently traded securities. Subject to certain exceptions, the Rule prohibits broker- dealers from publishing a quotation for a security, or submitting a quotation for publication, in a quotation medium unless they have reviewed specified information concerning the security and the issuer. Based on information provided by Financial Industry Regulatory Authority, Inc. (``FINRA''), in the 2016 calendar year, FINRA received approximately 461 applications from broker-dealers to initiate or resume publication of quotes of covered OTC securities on the OTC Bulletin Board and/or OTC Link or other quotation mediums. We estimate that (i) 195 of the covered OTC securities were issued by reporting issuers, while the other 266 were issued by non-reporting issuers, and (ii) it will take a broker-dealer about 4 hours to review, record and retain the information pertaining to a reporting issuer, and about 8 hours to review, record and retain the information pertaining to a non- reporting issuer. We therefore estimate that broker-dealers who initiate or resume publication of quotations for covered OTC securities of reporting issuers will require 780 hours (195 x 4) to review, record and retain the information required by the Rule. We estimate that broker-dealers who initiate or resume publication of quotations for covered OTC securities of non-reporting issuers will require 2,128 hours (266 x 8) to review, record and retain the information required by the Rule. Thus, we estimate the total annual burden hours for broker-dealers to initiate or resume publication of quotations of covered OTC securities to be 2908 hours (780 + 2,128). The Commission believes that the compliance costs for these 2,908 hours would be borne by internal staff working at a rate of $57 per hour.\1\ --------------------------------------------------------------------------- \1\ $57 per hour figure for a General Clerk is from SIFMA's Office Salaries in the Securities Industry 2013, modified by Commission staff to account for an 1800-hourwork-year and inflation, and multiplied by 2.93 to account for bonuses, firm size, employee benefits and overhead. --------------------------------------------------------------------------- Subject to certain exceptions, the Rule prohibits broker-dealers from publishing a quotation for a security, or submitting a quotation for publication, in a quotation medium unless they have reviewed specified information concerning the security and the issuer. The broker-dealer must also make the information reasonably available upon request to any person expressing an interest in a proposed transaction in the security with such broker or dealer. The collection of information that is submitted to FINRA for review and approval is currently not available to the public from FINRA. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number. The public may view background documentation for this information collection at the following Web site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: [email protected]; and (ii) Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, or by sending an email to: [email protected]. Comments must be submitted to OMB within 30 days of this notice. Dated: June 13, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-12536 Filed 6-15-17; 8:45 am] BILLING CODE 8011-01-P
![27738 Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices
C. Self-Regulatory Organization’s the Exchange, in appropriate cases, to those that may be withheld from the
Statement on Comments on the prevent unnecessary expense being public in accordance with the
Proposed Rule Change Received From imposed on small firms. Therefore, the provisions of 5 U.S.C. 552, will be
Members, Participants, or Others Commission hereby waives the available for Web site viewing and
No written comments were solicited operative delay and designates the printing in the Commission’s Public
or received with respect to the proposed proposed rule change operative upon Reference Room, 100 F Street NE.,
rule change. filing.16 Washington, DC 20549 on official
At any time within 60 days of the business days between the hours of
III. Date of Effectiveness of the filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Proposed Rule Change and Timing for Commission summarily may filing also will be available for
Commission Action temporarily suspend such rule change if inspection and copying at the principal
The Exchange has filed the proposed it appears to the Commission that such office of the Exchange. All comments
rule change pursuant to Section action is necessary or appropriate in the received will be posted without change;
19(b)(3)(A)(iii) of the Act 13 and Rule public interest, for the protection of the Commission does not edit personal
19b–4(f)(6) thereunder.14 Because the investors, or otherwise in furtherance of identifying information from
proposed rule change does not: (i) the purposes of the Act. If the submissions. You should submit only
Significantly affect the protection of Commission takes such action, the information that you wish to make
investors or the public interest; (ii) Commission shall institute proceedings available publicly. All submissions
impose any significant burden on under Section 19(b)(2)(B) of the Act 17 to should refer to File Number SR–
competition; and (iii) become operative determine whether the proposed rule NYSEMKT–2017–35 and should be
prior to 30 days from the date on which change should be approved or submitted on or before July 7, 2017.
it was filed, or such shorter time as the disapproved. For the Commission, by the Division of
Commission may designate, if IV. Solicitation of Comments Trading and Markets, pursuant to delegated
consistent with the protection of authority.18
Interested persons are invited to Eduardo A. Aleman,
investors and the public interest, the submit written data, views, and
proposed rule change has become Assistant Secretary.
arguments concerning the foregoing,
effective pursuant to Section 19(b)(3)(A) including whether the proposed rule [FR Doc. 2017–12454 Filed 6–15–17; 8:45 am]
of the Act and Rule 19b–4(f)(6)(iii) change is consistent with the Act. BILLING CODE 8011–01–P
thereunder.15 Comments may be submitted by any of
The Exchange has asked the the following methods:
Commission to waive the 30-day SECURITIES AND EXCHANGE
operative delay so that the proposed Electronic Comments COMMISSION
rule change will become operative • Use the Commission’s Internet
immediately upon filing. In support of Submission for OMB Review;
comment form (http://www.sec.gov/ Comment Request
its request, the Exchange stated that rules/sro.shtml); or
waiver of the operative delay would • Send an email to rule-comments@ Upon Written Request, Copies Available
continue to enable the Exchange to grant sec.gov. Please include File Number SR– From: Securities and Exchange
small firms exemptions from the OATS NYSEMKT–2017–35 on the subject line. Commission, Office of FOIA Services,
requirements as those firms are 100 F Street NE., Washington, DC
preparing to report information to the Paper Comments
20549–2736
CAT Central Repository, thereby • Send paper comments in triplicate
Extension:
avoiding potentially unnecessary to Secretary, Securities and Exchange Rule 15c2–11; SEC File No. 270–196, OMB
expense or hardship on firms that Commission, 100 F Street NE., Control No. 3235–0202
qualify for the exemption. Washington, DC 20549–1090.
Notice is hereby given that, pursuant
The Commission believes that All submissions should refer to File to the Paperwork Reduction Act of 1995
waiving the 30-day operative delay is Number SR–NYSEMKT–2017–35. This (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
consistent with the protection of file number should be included on the Securities and Exchange Commission
investors and the public interest. Absent subject line if email is used. To help the (‘‘Commission’’) has submitted to the
such action, a small firm that otherwise Commission process and review your Office of Management and Budget
would qualify for an exemption would comments more efficiently, please use (‘‘OMB’’) a request for approval of
have to comply with the Exchange only one method. The Commission will extension of the previously approved
requirements to record and report post all comments on the Commission’s collection of information provided for in
manual orders to OATS because the Internet Web site (http://www.sec.gov/ Rule 15c2–11, (17 CFR 240.15c2–11),
Exchange would not have the authority rules/sro.shtml). Copies of the under the Securities Exchange Act of
to grant an exemption during the 30-day submission, all subsequent 1934 (15 U.S.C. 78a et seq.) (‘‘Exchange
pre-operative period. The Commission amendments, all written statements Act’’).
agrees with the Exchange that waiving with respect to the proposed rule Rule 15c2–11 under the Exchange Act
the 30-day operative delay would enable change that are filed with the regulates the initiation or resumption of
Commission, and all written quotations in a quotation medium by a
13 15 U.S.C. 78s(b)(3)(A)(iii). communications relating to the broker-dealer for over-the-counter
14 17 CFR 240.19b–4(f)(6). proposed rule change between the
sradovich on DSK3GMQ082PROD with NOTICES
15 In addition, Rule 19b–4(f)(6)(iii) requires the
(‘‘OTC’’) securities. The Rule was
Exchange to provide the Commission with written
Commission and any person, other than designed primarily to prevent certain
notice of its intent to file the proposed rule change, manipulative and fraudulent trading
16 For purposes only of waiving the 30-day
along with a brief description and the text of the schemes that had arisen in connection
proposed rule change, at least five business days operative delay, the Commission has also
considered the proposed rule’s impact on
with the distribution and trading of
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the efficiency, competition, and capital formation. See unregistered securities issued by shell
Commission. The Exchange has complied with this 15 U.S.C. 78c(f).
requirement. 17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:12 Jun 15, 2017 Jkt 241001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 E:\FR\FM\16JNN1.SGM 16JNN1](https://thefederalregister.org/doc/82_FR_27853/page/1.svg)
![Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices 27739
companies or other companies having approval is currently not available to the Recording and Data Transmission
outstanding but infrequently traded public from FINRA. Requirements) to extend until
securities. Subject to certain exceptions, An agency may not conduct or November 15, 2019 the ability to exempt
the Rule prohibits broker-dealers from sponsor, and a person is not required to certain members from the recording and
publishing a quotation for a security, or respond to, a collection of information order data transmission requirements of
submitting a quotation for publication, under the PRA unless it displays a Rules 7440 and 7450, respectively, for
in a quotation medium unless they have currently valid OMB control number. manual orders. The proposed rule
reviewed specified information The public may view background change is available on the Exchange’s
concerning the security and the issuer. documentation for this information Web site at www.nyse.com, at the
Based on information provided by collection at the following Web site, principal office of the Exchange, and at
Financial Industry Regulatory www.reginfo.gov. Comments should be the Commission’s Public Reference
Authority, Inc. (‘‘FINRA’’), in the 2016 directed to: (i) Desk Officer for the Room.
calendar year, FINRA received Securities and Exchange Commission,
approximately 461 applications from Office of Information and Regulatory II. Self-Regulatory Organization’s
broker-dealers to initiate or resume Affairs, Office of Management and Statement of the Purpose of, and
publication of quotes of covered OTC Budget, Room 10102, New Executive Statutory Basis for, the Proposed Rule
securities on the OTC Bulletin Board Office Building, Washington, DC 20503, Change
and/or OTC Link or other quotation or by sending an email to: Shagufta_ In its filing with the Commission, the
mediums. We estimate that (i) 195 of the Ahmed@omb.eop.gov; and (ii) Pamela self-regulatory organization included
covered OTC securities were issued by Dyson, Director/Chief Information statements concerning the purpose of,
reporting issuers, while the other 266 Officer, Securities and Exchange and basis for, the proposed rule change
were issued by non-reporting issuers, Commission, c/o Remi Pavlik-Simon, or and discussed any comments it received
and (ii) it will take a broker-dealer about by sending an email to: PRA_Mailbox@ on the proposed rule change. The text
4 hours to review, record and retain the sec.gov. Comments must be submitted to of those statements may be examined at
information pertaining to a reporting OMB within 30 days of this notice. the places specified in Item IV below.
issuer, and about 8 hours to review, Dated: June 13, 2017. The Exchange has prepared summaries,
record and retain the information Eduardo A. Aleman, set forth in sections A, B, and C below,
pertaining to a non-reporting issuer. Assistant Secretary. of the most significant parts of such
We therefore estimate that broker- statements.
[FR Doc. 2017–12536 Filed 6–15–17; 8:45 am]
dealers who initiate or resume
publication of quotations for covered BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
OTC securities of reporting issuers will Statement of the Purpose of, and the
require 780 hours (195 × 4) to review, Statutory Basis for, the Proposed Rule
SECURITIES AND EXCHANGE Change
record and retain the information
COMMISSION
required by the Rule. We estimate that 1. Purpose
broker-dealers who initiate or resume [Release No. 34–80906; File No. SR–NYSE–
publication of quotations for covered 2017–28] The Exchange’s Rule 7400 Series
OTC securities of non-reporting issuers consists of NYSE Rules 7410 through
will require 2,128 hours (266 × 8) to Self-Regulatory Organizations; New 7470 and sets forth the recording and
review, record and retain the York Stock Exchange LLC; Notice of reporting requirements of the Order
information required by the Rule. Thus, Filing and Immediate Effectiveness of Audit Trail System (‘‘OATS’’) Rules.
we estimate the total annual burden Proposed Rule Change To Extend the The OATS Rules require all Exchange
hours for broker-dealers to initiate or Exchange’s Authority To Grant member organizations and associated
resume publication of quotations of Exemptions From the OATS persons to record in electronic form and
covered OTC securities to be 2908 hours Requirements report to the Financial Industry
(780 + 2,128). The Commission believes June 12, 2017. Regulatory Authority, Inc. (‘‘FINRA’’),
that the compliance costs for these 2,908 Pursuant to Section 19(b)(1) of the on a daily basis, certain information
hours would be borne by internal staff Securities Exchange Act of 1934 (the with respect to orders originated,
working at a rate of $57 per hour.1 ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 received, transmitted, modified,
Subject to certain exceptions, the Rule notice is hereby given that on June 2, canceled, or executed by members in all
prohibits broker-dealers from publishing 2017, New York Stock Exchange LLC NMS stocks, as that term is defined in
a quotation for a security, or submitting (‘‘NYSE’’ or the ‘‘Exchange’’) filed with Rule 600(b)(47) of Regulation NMS,3
a quotation for publication, in a the Securities and Exchange traded on the Exchange. This
quotation medium unless they have Commission (the ‘‘Commission’’) the information is used by FINRA staff to
reviewed specified information proposed rule change as described in conduct surveillance and investigations
concerning the security and the issuer. Items I and II below, which Items have of member firms for violations of FINRA
The broker-dealer must also make the been prepared by the Exchange. The rules and federal securities laws. Rule
information reasonably available upon Commission is publishing this notice to 7470 provides the Exchange with the
request to any person expressing an solicit comments on the proposed rule authority to exempt certain members
interest in a proposed transaction in the change from interested persons. from the recording and reporting
security with such broker or dealer. The requirements and from the recording
I. Self-Regulatory Organization’s
sradovich on DSK3GMQ082PROD with NOTICES
collection of information that is and order data transmission
submitted to FINRA for review and Statement of the Terms of Substance of requirements of Rules 7440 and 7450,
the Proposed Rule Change respectively, for manual orders if such
1 $57 per hour figure for a General Clerk is from
The Exchange proposes to amend exemption is consistent with the
SIFMA’s Office Salaries in the Securities Industry protection of investors and the public
2013, modified by Commission staff to account for
Rule 7470 (Exemption to the Order
an 1800-hourwork-year and inflation, and interest, and the member organization
1 15 U.S.C. 78s(b)(1).
multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead. 2 17 CFR 240.19b–4. 3 17 CFR 242.600(b)(47).
VerDate Sep<11>2014 17:12 Jun 15, 2017 Jkt 241001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\16JNN1.SGM 16JNN1](https://thefederalregister.org/doc/82_FR_27853/page/2.svg)
Document Created: 2017-06-16 00:52:23
Document Modified: 2017-06-16 00:52:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 27738 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR